This article contains some of our most important principles for starting a business with no money. Whether you've got thousands in the bank or you have nothing you must read this article before starting!
If you're thinking about getting a loan to start, then;
2. Finish this Start-Up Course
3. Still Don’t.
If by the end of this article you still think you need money then call Alan. If anyone can convince you to start a business with no money, he can.
Business has changed
Even since we started the PopUp Business School in 2011. The conversations we’re having now are completely different to the ones we had in the beginning.
In case you need some proof:
Who's the biggest retailer?
Alibaba. They don’t own shops!
One of the biggest media companies?
Facebook and then don’t produce any content!
The biggest accommodation provider?
AirBnb and they don’t own any accommodations!
The world’s largest taxi company?
Uber and they don’t own any taxis!
This is why:
Business is about having money not owing money.
The way we teach people how to start businesses is to write a business plan and apply for a loan (or use your savings) and this is based on the belief that takes money to make money.
It’s called start-up funding and that is the lie. It’s not funding – it’s debt. We’ve met people who have had to take jobs to pay off their start-up loans and there are lots of organisations in on the scam; start-up loans companies, banks, governments, colleges and universities.
When is the WORST POSSIBLE time to have debt when you’re running a business? At the beginning! When you have no customers!
And it will take you 9 times longer than you think to get one.
You don’t need a business plan to start a business, you don’t need money and you definitely don’t want to be starting a business in debt.
What you need is hope, confidence and a customer.
So how do you start a business without spending money?
Here’s the traditional approach that we get taught.
- You make a list of everything you need to start your business,
- Write your estimated cost next to each item and then add everything up,
- Then double it,
- That’s the amount of money you need to borrow,
- Put this in a business plan,
- Present to bank,
- Go into debt,
- Spend money,
- Maybe make money in year 2.
Can you wait 2 years to make a profit?! Do you want to go into debt?!